The following comparison refers to results for the fiscal 2015 third quarter versus the fiscal 2014 third quarter.

Total net revenues increased 40 percent to $13.1 million, from $9.4 million last year, reflecting strength in services revenue related to the implementation of NetSol's next-generation financing and leasing solution, NFS Ascent TM.

License fees were $1.2 million, down from $2.1 million, related to the mix of sales between NFS TM and NFS Ascent TM, which carries a higher service revenue component;

Maintenance fees were $3.0 million, compared to $2.4 million last year;

Services revenue more than doubled to $7.0 million, up from $3.2 million last year; and

Services revenue - related party (Netsol-Innovation and Investec) were $1.8 million, up from $1.5 million last year.

On a GAAP basis, net loss from continuing operations was $1.6 million, equal to $(0.17) per share. This compares with a net loss from continuing operations of $2.8 million, equal to $(0.31) per share.

Adjusted EBITDA (a non-GAAP measure) was $883,000, or $0.09 per adjusted diluted share, which removed $2.5 million in depreciation and amortization. This compares with adjusted EBITDA of $658,000 or $0.07 per adjusted diluted share, last year, which removed $2.0 million in depreciation and amortization.

The reconciliation of adjusted EBITDA to net income, the most comparable financial measure based upon GAAP, as well as a further explanation of adjusted EBITDA, is included in the financial tables at the end of this press release.

Management Commentary

"The quarter reflects continued progress in the implementation of our large NFS Ascent contract, as well as investment to enhance our strategic position and delivery capability in Europe," said Najeeb Ghauri, CEO of NetSol. "Today we are at a pivotal stage for the company, approaching a time of record revenue, with further momentum highlighted by a healthy new business pipeline for NFS Ascent TM and NFS TM, continued upgrades and demand for our legacy region-specific solutions, and new agreements in Europe that have yet to contribute to results.

"Adding to our confidence is the relaxation of restrictions for new finance and leasing market entrants into China, where our NFS solution has the dominant market share; improved finance and leasing markets in the U.S. and Europe, where we continue to make progress; and China's investment in Pakistan, which is expected to help the overall business environment, quality of life and security profile of the country," Ghauri said.

Following is additional detail for the quarter:

Increase in cost of revenues, related to the hiring and training of technical employees, as well as the timing of salary increases. Operational expenses also increased as a result of new business activities. Expenses are expected to remain at the current level as new hiring has slowed, with the addition of seven people in the quarter;

Cash and cash equivalents were $10.9 million, of which approximately $7.3 million were held by the company's foreign subsidiaries;

Accounts receivable were $7.6 million, compared to $5.4 million last year. The quality of receivables remains strong; and

The company purchased 1.58 million shares of NetSol PK common stock from the open market for $577,000, resulting in an overall decrease in non-controlling interest from 36.6% to 34.9%.

Fiscal 2015 First Nine Months Financial Results

For the first nine months of fiscal 2015, total net revenue rose to $35.7 million, compared to $26.8 million for the first nine months of fiscal 2014. The company reported a GAAP net loss from continuing operations of $4.8 million, or $(0.51) per share, compared with a GAAP net loss from continuing operation of $5.2 million, or $(0.57) per share, in the comparable period last year.

Adjusted EBITDA (a non-GAAP measure) for the first nine months of fiscal 2015 increased to $2.4 million, or $0.25 per adjusted diluted share, which removed $7.1 million in depreciation and amortization. This compares with adjusted EBITDA of $968,000, or $0.11 per adjusted diluted share, last year, which removed $4.9 million in depreciation and amortization.

Fiscal 2015 Third-Quarter Conference Call

When: Monday, May 11, 2015

Time: 8:30 a.m.Eastern Time

Phone:1-888-572-7034 (domestic)

1-719-325-2329 (international)

A live Webcast will be available online within the investor relations section of NetSol's website at http://www.netsoltech.com, where it will be archived for 90 days.

NetSol Technologies, Inc. (Nasdaq:NTWK) is a worldwide provider of IT and enterprise software solutions primarily serving the global leasing and financing industry. The Company's suite of applications are backed by 40 years of domain expertise and supported by a committed team of more than 1500 professionals placed in eight strategically located support and delivery centers throughout the world.

Forward-Looking Statements

This press release may contain forward-looking statements relating to the development of the Company's products and services and future operation results, including statements regarding the Company that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "expects," "anticipates," variations of such words, and similar expressions, identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Factors that could affect the Company's actual results include the progress and costs of the development of products and services and the timing of the market acceptance. The subject Companies expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained herein to reflect any change in the company's expectations with regard thereto or any change in events, conditions or circumstances upon which any statement is based.

NetSol Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

ASSETS

As of March 31, 2015

As of June 30, 2014

Current assets:

Cash and cash equivalents

$10,887,358

$11,462,695

Restricted cash

90,000

2,528,844

Accounts receivable, net of allowance of $959,333 and $1,088,172

7,520,921

5,403,165

Accounts receivable, net - related party

2,498,160

2,232,610

Revenues in excess of billings

4,837,306

2,377,367

Revenues in excess of billings - related party

188,426

--

Other current assets

2,515,154

2,857,879

Total current assets

28,537,325

26,862,560

Property and equipment, net

26,410,815

29,721,128

Intangible assets, net

24,777,549

28,803,018

Goodwill

9,516,568

9,516,568

Total assets

$89,242,257

$94,903,274

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and accrued expenses

$5,310,510

$5,234,887

Current portion of loans and obligations under capitalized leases

2,989,520

5,791,258

Unearned revenues

5,646,287

3,192,203

Unearned revenues - related party

50,490

47,649

Common stock to be issued

88,324

347,518

Total current liabilities

14,085,131

14,613,515

Long term loans and obligations under capitalized leases; less current maturities

594,166

1,532,080

Total liabilities

14,679,297

16,145,595

Commitments and contingencies

Stockholders' equity:

Preferred stock, $.01 par value; 500,000 shares authorized;

--

--

Common stock, $.01 par value; 14,500,000 shares authorized; 10,145,207 shares issued and 10,117,928 outstanding as of March 31, 2015 and 9,150,889 shares issued and 9,123,610 outstanding as of June 30, 2014

Although the net EBITDA income is a non-GAAP measure of performance, we are providing it because we believe it to be an important supplemental measure of our performance that is commonly used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. It should not be considered as an alternative to net income, operating income or any other financial measures calculated and presented, nor as an alternative to cash flow from operating activities as a measure of our liquidity. It may not be indicative of the Company's historical operating results nor is it intended to be predictive of potential future results.